Detail from TNP www The location and depths of the coal seams are consequently already mapped by LongMay across a large area. This differentiates this Project from others whereby it is typically an exploration exercise in the initial years, to locate the coal seams and their thickness.
This is expected to be a significant advantage of this Project however what remains to be known are the size of any recoverable gas resource, the quality of the gas and if ot can be produced at commercial rates. This information is expected to be obtained via the well programme in early 2013.
There is a large amount of anecdotal information via the drilling of boreholes by LongMay that the coals flow considerable volumes of gas. Should the upcoming test wells demonstrate that coals do indeed produce commercial quantities of sales quality gas, an investment decision for a multi well development will likely follow rapidly as the information to optimally locate production wells is already available.
The proximity of the coal seam areas to gas markets and infrastructure also differentiates this Project. The market for domestic gas and other power generation markets are only a few kilometres away and hence long distance infrastructure does not appear to be required.
Specifically, it is understood that there is a 118km gas reticulation network already in place supplying existing domestic customers with gas, just 2.8 kms from the first planned well site
TNP Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
